SUI Definition

SUI, or state unemployment insurance, is a type of payroll tax that employers must pay to the state for unemployment insurance benefits. It is also known as SUTA (State Unemployment Tax Act) tax.

SUI Extended Definition

Employers (and, in some cases, employees) are responsible for paying SUI tax on each employee’s wages. These taxes fund state unemployment insurance benefits.

Each state sets its own SUI rate and wage base. Pay SUI tax according to your state’s specific requirements.

Last Updated By

Rachel Blakely-Gray | May 01, 2023

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